Buying a house is possibly one of the largest investments you will make in your life.
If you’re like the majority of us, you’ll need to borrow money, so before you go looking for your dream home, it’s a really good idea to find out how much you can borrow.
If you decide to do a little research yourself, you’ll find some online tools that are really useful such as mortgage calculators. These give you a quick idea of how much you can borrow by filling in a few simple details.
You can then make an appointment to apply for your pre-approved loan.
Be prepared to bring some documentation to your meeting. We will advise you of what you need to bring but it will be documents such as proof of deposit, proof of identity, proof of income & monthly expenses including other loans & credit cards.
Benefits of having a pre-approved loan:
- You will have a general idea of how much money you have to spend.
- You won’t fall in love with a house that is out of your price range & end up disappointed.
- You can act quickly when you find the property that you want.
- You can bid at auction with confidence.
- It’s free & valid for up to 3 months.
- The real estate agent & seller know that you are a serious buyer.
Conditions of pre-approval:
- All information supplied is true & correct.
- All documentation needed to verify deposit, security, assets, liability & income has been received.
- Any property offered as security for the loan has been assessed as satisfactory.
- Lenders Mortgage Insurance may be required. If so, the insurer will need to agree to provide insurance.
- Additional conditions may be included on a case by case basis and these will be explained in detail at your appointment.
It’s important to be aware of the common reasons why a pre-approved loan application would be declined, to avoid this happening:
- Insufficient documentation
- Low credit rating
- Too many enquiries on your credit file
- Your situation has changed
- The lender’s policy has changed
- Interest rates have increased
- The loan amount is more than 80% of the property value.
Remember, even with a pre-approved loan, once you find your dream home, you will still need formal approval which will take between 1 hour & a few days depending if valuations are required.
If you’re ready to get on the property ladder or are looking for an investment property, contact our friendly team today & we can start the pre-approval process for you.
The above information is general in nature. It has been prepared without taking into account your objectives, financial situation or needs.